Severance Pay


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Severance Pay

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ERISA: Transfer to Lesser Job Entitles Employee to Severance Benefits; How to Avoid the Employer's Missteps
August 2010
When you hear a reference to "ERISA" (the federal Employee Retirement Income Security Act), it typically brings to mind employee retirement and insurance plans. But, as one employer was reminded by the Ninth Circuit Court of Appeals, which includes California, it also applies to severance plans. This means you need to be careful when denying benefits under severance plans or risk costly federal litigation and reversal by a court. . . . more

Sample Basic California Severance Agreement
CEA Online Exclusive October 2009

This is a sample basic severance agreement that is designed to comply with both California and federal law, including the Age Discrimination in Employment Act (ADEA) and the Older Workers Benefits Protection Act (OWBPA)

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Terminations: Special Rules for Older Employees
October 2009
Severance agreements are a great way to protect your company against lawsuits brought by former employees, whether they're leaving because of a layoff, termination, or resignation. However, special rules apply to severance agreements presented to employees age 40 or over . . . more

News Note: Some Severance Payments May Be Exempt from FICA
October 2009
Because of a series of cases in the federal circuit appeals court last year, the rules regarding when both employers and employees owe Federal Insurance Contribution Act (FICA) taxes on severance payments have been clarified . . . more

News Note: Microsoft to Let Laid-Off Employees Keep Severance Overpayments
April 2009
Shortly after implementing the first large-scale layoffs in its history, Microsoft noticed that it had overpaid severance to 25 laid-off workers by about $4,000 to $5000 each. Microsoft then sent letters to the workers asking . . . more

News Note: High Court to Review Stock Forfeiture Decision
July 2008
In the March 2008 issue of CEA, we reported that a California appeals court upheld an employee stock purchase plan that provided for the forfeiture of purchased stock if the employee terminated before two . . . more

Bulletin: Troubled by terminations? Get your questions answered at the ERI Intensive Class on terminations in June
April 2008
Firing an employee is never a pleasant experience, yet it's an unavoidable aspect of your job. But make the wrong move when terminating a worker and your company could be facing a costly lawsuit. Don't take chances . . . more

Releases: Military Leave Claims Not Released by Severance Agreement Provision
February 2008
Brian Perez, a captain in the U.S. Marine Corps Reserves, was terminated the day he returned to work at Uline, Inc., in Orange County, following a one-week military leave. Uline presented Perez with a severance agreement, which stated that Perez would receive six weeks' salary in exchange for . . . more

Family and Medical Leave Act: FMLA Waiver Requires Court Approval; Guidelines to Follow
October 2007
A new federal appeals court ruling calls into question the common practice of including Family and Medical Leave Act (FMLA) claims among the types of claims waived by a departing employee who signs a general release . . . more

Settlement Agreements: Did Release Cover Employment Discrimination Claims? Be Sure Scope Is Sufficiently Broad
September 2006
A new California appeals court decision underscores the importance of using care when drafting settlement and release agreements—otherwise, you might discover too late that your agreement doesn't cover enough issues to prevent a subsequent lawsuit. . . . more

Bulletin: California Supreme Court Clarifies Termination Pay Statutes
August 2006
The California Supreme Court has ruled unanimously that for purposes of Labor Code provisions requiring payment of wages immediately upon discharge—and imposing waiting time penalties for . . . more

News Note: Workers Get Severance Pay in WARN Settlement
March 2006
A group of 140 garment workers who were laid off on just one hour's notice from their jobs at San Francisco garment company NOVA Knits will receive more than $500,000 to settle their claim that the la . . . more

Severance Pay: Court's Ruling that Severance Package Wasn't an Employee Benefit Plan Has Expensive Consequences for Employer
May 2003
A new federal court case involves an all-too-familiar scenario. An employer acquired a new business and had to terminate the old workforce. The employer, however . . . more

Severance Agreements: Older Worker Who Signs Release Can Still Sue You; Supreme Court Rules
March 1998
Once a terminated employeehas signed a release promising not to sue and has cashed theirseverance check, you probably think you are free from their legalclaims against you. In most cases, you'd b . . . more

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